The Problem of “Utility Weights” in Group Preference Aggregation

A theory of preference aggregation is developed that sheds light on the question of how much relative weight should be given to the interests of the various parties affected by a group decision.

Abstract

The problem of interpersonal comparisons of utility is discussed, and a new distinction between hypothetical and operational interpersonal comparisons is introduced. A theory of preference aggregation is then developed that sheds light on the question of how much relative weight should be given to the interests of the various parties affected by a group decision. The results of this theory are related to the NASH-HARSANYI theory of bargaining.